Nio Strategic Metals Announces Debt Conversion Agreements
Nio Strategic Metals Announces Debt
Conversion Agreements
Montreal, Quebec--(Newsfile Corp. - April 11, 2025) - Nio Strategic Metals Inc. (TSXV: NIO) (OTC Pink:
NIOCF) ("
Nio
" or the "
Corporation
"), a critical mineral exploration company, today announced, subject
to the filings with and the approval from the TSX Venture Exchange (the "
TSXV
"), that it intends to enter
into shares for debt agreements (the "
Agreements
"), to satisfy an aggregate of $495,000 of the
Corporation's outstanding debt. An aggregate of 11,000,001 common shares in the capital of the
Corporation (the "
Shares
") at a deemed price of $0.045 per Share are proposed to be issued in
accordance with the policies of the TSXV.
Loan
conversion
Nio agreed on a share for debt conversion agreement with Nio-Metals Holdings LLC to convert the
outstanding Principal of a Loan dated February 17, 2021 in the amount of $450,000 into Shares at a
price of $0.045 per share for an aggregate number of 10,000,000 Shares to be issued (the "
Debt
conversion agreement
").
Shares for services agreements
The Corporation also entered into a debt conversion for services with four current directors of the
Corporation and its Chief Financial Officer (the "
Shares for services agreements
") to settle unpaid
accrued services fees of $45,000 into Shares at a price of $0.045 per share for an aggregate number of
1,000,001 Shares to be issued in connection with services rendered between July 1, 2024 and April 10,
2025.
The Board of Directors and Management of Nio believe that these two agreements will improve its
financial position drastically since, the Corporation will no longer carry any debt on its balance sheets,
except for usual short-term accrued payables. Also, both agreements are in the best interests of Nio as it
will help the Corporation preserve its cash position.
Related Party Transactions
The Debt conversion agreement and the Shares for services agreements constitute Related Party
Transactions within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security
Holders in Special Transactions ("
MI 61-101
").
The Corporation is relying on the exemptions from the valuation and minority shareholder approval
requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market
value of the shares for debt transaction with the forgoing insiders does not exceed 25% of the market
capitalization of the Corporation, as determined in accordance with MI 61-101. The Corporation did not
file a material change report in respect of the related party transaction at least 21 days before the closing
of the debt settlement, which the Corporation deems reasonable in the circumstances as the
Corporation wishes to improve its financial position by reducing its existing liabilities.
The issuance of the Shares is subject to the approval of the TSXV. The Shares to be issued will be
subject to a four-month hold period pursuant to applicable securities regulations and the policies of the
TSXV.
Early Warning Disclosure
In connection the Debt conversion agreement, Nio-Metals Holdings LLC (the "
Insider
") will be issued
10,000,000 Shares. Following the Debt conversion agreement, the Insider will own or control 46,658,211
Shares representing approximately 45.9% of the issued and outstanding Shares on an undiluted basis.
The Insider holds the Shares for investment purposes, and may evaluate such investment on an ongoing
basis and subject to various factors including, without limitation, the Corporation's financial position, the
price levels of the Shares, conditions in the securities markets and general economic and industry
conditions, the Corporation's business or financial condition, and other factors and conditions that the
Insider may deem appropriate. The Insider may increase, decrease or change his ownership over the
Shares or other securities of the Corporation.
A copy of the Early Warning Report with additional information in respect of the foregoing matters will be
filed on SEDAR (
www.sedarplus.ca
) under the Corporation's profile. For further information, including a
copy of the early warning report required under applicable Canadian securities laws to be filed by the
Insider as a result of the Shares for Debt Transaction referred to in this press release, please contact
Nio Strategic Metals Inc. at: (514) 560-7623.
About Nio Strategic Metals
Nio Strategic Metals is an exploration and development company, with a focus on becoming a
ferroniobium producer. The Corporation holds niobium properties located in Oka and near Mont-Laurier
and another exploration property in the Province of Québec.
For more information on the Corporation, please refer to the Corporation's public documents available
on SEDAR (
www.sedarplus.ca
) or on the Corporation's website (
https://niostratmet.com/
) or contact:
Bruno Dumais, Chief Financial Officer
514-560-7623
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press
release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be
any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be
unlawful, including any of the securities in the United States of America.
Cautionary Statement on Forward-Looking Information
This news release contains forward-looking statements and forward-looking information (together,
"forward looking statements") within the meaning of applicable Canadian securities laws. Statements,
other than statements of historical facts, may be forward-looking statements. Generally, forward-
looking statements can be identified by the use of terminology such as "plans", "expects",
"estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain
actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved", the
negative of these terms and similar terminology although not all forward-looking statement contains
these terms and phrases. Forward-looking statements involve risks, uncertainties and other factors
that could cause actual results, performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking statements. These risks and uncertainties
include, but are not limited to, the risk factors set out in Nio Strategic Metals' annual and/or quarterly
management discussion and analysis and in other of its public disclosure documents filed on
SEDAR at
www.sedarplus.ca
, as well as all assumptions regarding the foregoing. Although Nio
Strategic Metals believes that the assumptions and factors used in preparing the forward-looking
statements are reasonable, undue reliance should not be placed on these statements, which only
apply as of the date of this news release, and no assurance can be given that such events will occur in
the disclosed time frame or at all. Except where required by applicable law, Nio Strategic Metals
disclaims any intention or obligation to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/248154